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Stanley Black & Decker picking up MTD stake
Posted on Wednesday, 12 September 2018 13:08
New York-listed industrial tools and household hardware distributor Stanley Black & Decker has signed on the dotted line to acquire a 20.0 per cent shareholding in MTD Products, a manufacturer of outdoor power equipment.
Under the terms of the transaction, the buyer will pay USD 234.00 million in cash for the business.
The parties believe the move will strengthen their existing commercial relationship and enable them to capitalise on opportunities to increase revenue and savings while increasing their product ranges and improving operational efficiency.
James Loree, chief executive of Stanley Black & Decker, stated: "This investment in MTD increases our presence in the USD 20.00 billion global lawn and garden market in a financially and operationally prudent way.
“We have always viewed outdoor products as an attractive growth category for us to expand our presence beyond handheld electric products. This transaction gives us the opportunity to do that with a world class partner.”
Completion of the transaction is expected to follow early next year, subject to the green light from regulatory bodies, among other closing conditions.
Stanley Black & Decker has an option to buy the remaining 80.0 per cent stake in MTD from 1st July 2021.
The target was founded in 1932 and now claims to be a worldwide leader in the outdoor power equipment field.
Its product range includes mowers, snow throwers, utility vehicles, trimmers and tillers, which it makes at facilities throughout North America, Europe, Asia and Oceania.
Its offering is sold under a range of brand names, such as Remington, Cub Cadet and Robomow, among others.
Stanley Black & Decker is no stranger to the acquisition trail, having already announced two purchases this year, according to Zephyr, the M&A database published by Bureau van Dijk.
The first of these was signed off in January, when the firm agreed to pick up the industrial business of Nelson Fastener Systems for USD 440.00 million.
This was followed by August’s announcement that it would acquire International Equipment Solutions from KPS Capital Partners for USD 690.00 million in cash. Completion of that deal still requires approval from regulators.
© Zephus Ltd